PHASE 2 CHECK RECOVERY

If NSF checks cannot be collected in NorthStar's "first phase process," or you have a stop payment or closed account check, NorthStar offers an optional and intensive "in-house" secondary collection service.

Secondary collection efforts include collection phone calls, credit bureau reporting, district attorney intervention, and possible legal action.  Checks recovered in this phase are "split" between NorthStar and its clients.  You receive 50% of the collected state bad check fee plus 50% of your phase 2 check's face value.

You may let the appropriate checks go to this secondary collection service "automatically" (this means NorthStar will move them into this phase when appropriate).  You may be "selective" about second phase collections (this means you use NorthStar's web site to manually select checks for this type of processing).

I recommend "phase 1 and 2 automatic" and letting NorthStar process these checks for 18 months if necessary.  NorthStar will exhaust phase 1 efforts on NSF checks and only move them to phase 2 unless absolutely necessary.  Stop payment and closed account checks automatically go to phase 2 collection.  You make the phase 1 and 2 collection choices when signing up.